The law of diminishing marginal utility states that as you consume more and more of a good, other things constant,
a. total utility eventually rises
b. marginal utility can become positive
c. marginal utility approaches, but never becomes, zero
d. total utility can never become negative
e. marginal utility eventually declines
E
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During recessions, automatic stabilizers tend to make the government's budget
a. move toward deficit. b. move toward surplus. c. move toward balance. d. not necessarily move the budget in any particular direction.
When people are fully informed about the choices that they and other relevant economic actors face, we say they:
A. will always be willing to go through with the transaction. B. will always try to hide that information to gain advantage. C. have relevant information. D. have complete information.
Under limit pricing, the incumbent will produce:
A. less than the monopoly output and charge a price that is greater than the monopoly price. B. more than the monopoly output and charge a price that is greater than the monopoly price. C. more than the monopoly output and charge a price that is less than the monopoly price. D. less than the monopoly output and charge a price that is less than the monopoly price.
A production possibilities frontier shows the combinations of various goods that should be produced.
Answer the following statement true (T) or false (F)